Connect with us

Popular World News

BOJ’s Kuroda says stock boom reflects economic optimism, defends ETF scheme By Reuters

China says only small number of firms moving supply chains out of the country


BOJ’s Kuroda says stock boom reflects economic optimism, defends ETF scheme By Reuters

© Reuters. Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo

By Leika Kihara TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Tuesday the recent stock price rally reflected market optimism over the global economic outlook, brushing aside views its ultra-loose monetary policy was fuelling an asset price bubble. Kuroda said the central bank would be vigilant for financial risks associated with prolonged easing, nodding to growing concern among some lawmakers that prolonged easing was sowing the seeds of a bubble. But he stressed that it was premature to debate an exit from super-loose policy including the BOJ’s huge purchases and holdings of exchange-traded funds (ETF), as the coronavirus pandemic continues to ravage the economy. “It’s likely to take significant time to achieve our price (inflation) target. As such, now is not the time to think about an exit including from our ETF buying,” Kuroda told parliament. The BOJ has unveiled a plan to review its policy tools, including its ETF-buying programme, in March to make it more sustainable as the pandemic forces it to maintain its stimulus for a prolonged period. The plan reflects a growing concern among policymakers over the rising cost of extended easing. Some analysts also criticize the BOJ for continuing its huge ETF buying at a time Tokyo stock prices have set new highs. Kuroda said it was hard to predict whether stock markets were in a bubble. “Optimism over the global economic outlook and steady vaccine rollouts may be behind the recent surge in stock prices,” Kuroda said.
“But the global outlook remains highly uncertain,” he said, adding that risks to Japan’s economy remained skewed to the downside.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!